By ALO360 Editorial Board
A recent report by the Daily Trust puts Nigeria’s rising debt in simple terms: as of December 2025, the country’s total public debt of N159.28 trillion amounts to about N724,000 per Nigerian.
Strip away the figures, and the implication is straightforward — the country is borrowing heavily, and the bill will be settled, one way or another, by citizens.
Data from the Debt Management Office show that the debt stock continues to grow, largely driven by domestic borrowing. More loans have already been approved and are not yet reflected in the current figures, which means the number will climb further.
There is nothing inherently wrong with borrowing. Governments borrow to build roads, fix power, improve healthcare, and support economic growth. The problem starts when the results are difficult to see.
One of the common defences from policymakers is that Nigeria’s debt-to-GDP ratio — projected at about 34 percent by the Central Bank of Nigeria — is still within a “safe” range. But that measure does not tell the full story.
A country’s ability to handle debt depends less on how it compares with its GDP and more on how much revenue it generates. Nigeria’s revenue remains weak, and a large portion of it already goes into servicing existing debt. That leaves limited room for actual development.
So, while the ratio may look acceptable, the pressure on government finances is real.
The more pressing issue is what the borrowed money is being used for.
Take the health sector. The Minister of Health, Muhammad Ali Pate, indicated that about N36 million was released out of a ₦218 billion capital appropriation for the Federal Ministry of Health and Social Welfare in Nigeria for the 2025 fiscal year. Divided across an estimated population of 220 million, that comes down to roughly 16 kobo per person. That figure speaks for itself.
The same pattern appears in other sectors. Power supply remains unstable. Infrastructure gaps persist. Public services show little improvement that matches the scale of borrowing.
This raises a basic question: if the country is borrowing this much, why is the impact so hard to find?
The removal of fuel subsidy was meant to change things. It was presented as a difficult but necessary step to free up funds for development. According to Senator Olamilekan Adeola, the policy is saving Nigeria over N10 trillion annually.
If those savings exist, then continued heavy borrowing becomes harder to explain.
At the same time, citizens are dealing with higher fuel costs, rising prices, and reduced purchasing power. The expectation was that the sacrifice would lead to visible improvements. So far, many Nigerians are still waiting.
Borrowing works when it is tied to clear, productive outcomes — infrastructure, energy, industry, and services that strengthen the economy. It becomes a problem when it mainly supports consumption or fills short-term gaps without lasting value.
In that case, the country is not building capacity; it is simply pushing obligations forward.
Financial experts have pointed out that debt is ultimately paid through taxes and public revenue. That means the burden does not sit with the government alone. It is spread across citizens, including those who are not yet part of the workforce.
This is why the conversation about debt cannot stop at how much is owed. It has to include how well the money is used.
Nigeria does not have the luxury of waste at this scale. Every borrowed naira should lead to something tangible — better services, stronger infrastructure, or economic growth that can support repayment.
Right now, the numbers are rising faster than the visible results. That gap is what should worry Nigerians.
